Oil is now rocketing

After a volatile week, in which oil slammed past the $28 (£19) per barrel mark, the commodity is finally rallying back to $30.

We got hints that sub-$30 oil wasn’t in Saudi Arabia’s plans. According to a report in The Financial Times, Khalid al-Falih, chairman of the state-owned oil company Saudi Aramco, said at the World Economic Forum in Davos that he expects a recovery in prices this year.

Meanwhile, other markets are recovering. The Nikkei 225 staged a stunning rally and was up just over 6% at one point, finishing 16,965, up 5.8% for the day — a huge gain of 941 points.

As of 7:30 a.m. GMT (2:30 a.m. ET) both major benchmarks, West Texas Intermediate and Brent crude, were both up around 4%.

Here’s WTI:

And here’s Brent:

Prices had fallen this week to record lows.

On Thursday, oil fell below $28 a barrel for the first time since September 2003, marking a 75% decline from July 2014.

The renewed slide corresponded with a report released by the International Energy Agency in which the group warned that the oil market could drown in over-supply in 2016.

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